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Oil spikes over 1% as Israel intensifies attacks

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Asset Watch

Higher highs for Hilton?

 

Tuesday, March 28, 2023

As anxiety over a banking crisis clouds the outlook for U.S. equities, S&P Global reported on Mar. 24 that its U.S. Composite PMI hit a 10-month high, and the 53.3 reading outperformed the 47.5 expected. An excerpt read:
“U.S. companies signaled a renewed expansion in business activity in March…. Output grew at a solid pace that was the fastest since May 2022 as demand conditions improved and new order growth returned. Manufacturers and service providers alike registered upturns in output, with service sector firms driving the increase.”
While recession fears have uplifted technology stocks at the expense of economically-sensitive companies, could resilient U.S. growth flip the script? If so, the Hilton hotel could be primed for a reversal.

The hotel giant has suffered over the last month, but it showcases a textbook uptrend of higher highs and higher lows. After the rising support line stopped in the intraday slide on Mar. 24, the Hilton closed above its 200-day moving average. As a result, the technical outlook remains constructive.

The 200-day MA also served as resistance during the July, September and October rallies, and after a breakout in November, it became support for roughly a month. Therefore, with the rising support line not far behind the 200-day MA, the risk-reward looks attractive as long as one of these levels holds.

Do you think the Hilton will make a comeback?


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